As seen in video footage taken by ABC News, the Iron Dome intercepts missiles mid-air in a matter of seconds.

Jack Guez/AFP/Getty Images

An Israeli missile is launched from the Iron Dome defence missile system in the southern Israeli city of Ashdod in response to a rocket launched from the nearby Palestinian Gaza Strip on November 18, 2012.

First, the system identifies incoming missiles and then determines whether their range and direction threatens a highly populated area, like a city. If the incoming missile is deemed a threat than Iron Dome operators launch a counter-missile. This missile will destroy the enemy missile mid-air.

Ronen Zvulun/Reuters

Smoke trails are seen as an Iron Dome intercepts a rocket which was launched from Gaza, near the southern town of Sderot November 15, 2012.